Foley & Lardner LLP Partner Michael Walsh is featured in a SupplyChainBrain video interview, “Watch: The Fallout From the Russia-Ukraine Conflict,” discussing the impact on supply chains to date arising from Russia’s invasion of Ukraine, and what further effects companies might experience in the months to come.
The most serious supply chain disruption right now is the cutting off of exports of grain from Ukraine, especially to Africa. In Europe, buyers of Russian oil are scrambling for alternative sources. In that respect, “there will be downstream effects,” said Walsh. “I do not know that they are being acutely felt right now.”
In regards to U.S. exporters to Russia, Walsh stated that they still must be aware of the various sanctions in place that could affect them, and that exporters might be liable for penalties if their products end up in Russian hands, even if the initial buyer had no visible ties to those individuals. He said that industrial and tech sellers will have to adopt the due diligence methods of military suppliers, who have long been required a take special care that their products do not get to sanctioned purchasers. Walsh noted that companies are taking these obligations “very seriously” stating that “U.S. companies are paying attention to the issue and buckling down.”
As the Russia-Ukraine war continues, so too do new business and legal implications for companies around the world. For more information on how to mitigate risk and protect your business, contact a Foley lawyer today.